Morgan Stanley Forecasts 2027 Cloud Capex Surge to $1.3 Trillion

Morgan Stanley projects top 14 cloud providers' capex to hit $1.3T by 2027, excluding sovereign AI. AI semiconductors may reach $753B by 2030, nearing half of total market.

Woofun AI reports that Morgan Stanley’s latest Greater China Semiconductor Report asserts the AI semiconductor industry remains in a high-growth cycle. This expansion extends beyond GPU demand to include advanced processes, packaging, memory, testing equipment, ASICs, and the Chinese AI chip supply chain.

The firm predicts the cloud AI semiconductor market could reach $485 billion by 2026 and expand to approximately $753 billion by 2030.

Concurrently, the global semiconductor market is projected to hit $1.5 trillion by 2030, with AI semiconductors accounting for nearly half of the total. Using its Cloud Capex Tracking model, Morgan Stanley forecasts that capital spending by the world's top 14 listed cloud service providers could approach $1.3 trillion by 2027, a figure that excludes sovereign AI projects.